EU Prepares for All Trade Scenarios amid US Talks

The European Union is actively engaging with President Donald Trump's administration to negotiate a trade agreement while preparing for all possible scenarios, according to European Commission President Ursula von der Leyen. Despite a deadline initially set for steeper reciprocal tariffs, the Trump administration postponed enforcement until August 1, with Trump warning no further delays will occur and hinting at possible tariffs on semiconductors and pharmaceuticals, including medicines which could face rates up to 200%. The EU remains committed to upholding its principles and defending its interests through good faith negotiations, while also consulting member states to maintain a unified stance. European Trade Commissioner Maroš Šefčovič recently made progress on various negotiation points during his visit to Washington, but EU officials acknowledge ongoing confusion and the need to carefully interpret U.S. positions. The EU aims to reach a deal in principle before the August deadline to provide certainty for trade partners. Overall, Brussels is closely coordinating efforts and remaining vigilant amid the evolving trade discussions with the U.S.